Economists at MUFG Bank expect the Chinese Yuan to strengthen against the US Dollar. 

China’s economy is rebounding after COVID disruption

“After COVID restrictions were released at the end of last year, China’s economy has rebounded at the start of 2023 as pent up demand is realised. It has been mainly driven by consumption and services sector growth while growth in manufacturing output and property investment have disappointed. We expect China’s economy to expand by 5.5% this year.”

“China’s trade surplus with the US has continued to widen hitting a new record as import demand from China has failed to keep up with strengthening export growth. The wider trade surplus should encourage a stronger CNY and weaker USD.”